Payment agent fee

Payment agent fee: what the agent is paid for transferring money to a foreign beneficiary under an agency agreement, in its own name but at the client’s expense. In the client’s books, this is agency remuneration. It is confirmed by the agent’s report and completion certificate.

What it is made of

• a percentage of the payment amount;
• a minimum fee, if the percentage of the payment amount does not cover the agent’s costs;
• the FX markup, if the agent converts roubles into currency at its own rate;
• correspondent bank charges and fixed transfer charges.

In a SWIFT transfer, bank charges are allocated in one of three ways. OUR: the sender pays all charges. SHA: each party pays its own bank. BEN: the charges are deducted from the amount the seller receives. The choice determines whether the full invoice amount reaches the supplier.

How to compare

The fee figure alone says little. An agent with a low percentage may make its money on the exchange rate or on fixed charges. Compare the full cost: how many roubles were debited and how much currency reached the beneficiary. These two numbers and a benchmark rate give you the all-in rate as a percentage.

What must be written down before payment

• the percentage and the minimum fee;
• the exchange rate;
• fixed charges;
• who pays bank charges: OUR, SHA or BEN.

Terms that are to be “specified later” end up as extra charges.

How it works with us

The client pays the executing agent’s fee: it is written in the payment order together with the rate before the roubles are debited. The client does not pay VEDmost separately: the broker’s fee is paid by the executing agent. Tell us your current rate, and we’ll look for a lower rate in our pool. If we can’t find one, we’ll say so: Compare your rate.